New Articles

February U.S. Import Container Volume Continues Strong Performance: Descartes

carrier baltimore import mach electronic shipping route import 7LFreight Expands Instant Cargo Pricing and Booking for North American Forwarders Across Both Air and Trucking  import container descartes automation baltimore bridge container freight global trade

February U.S. Import Container Volume Continues Strong Performance: Descartes

Descartes Systems Group, the global leader in uniting logistics-intensive businesses in commerce, released its March Global Shipping Report for logistics and supply chain professionals. In February 2024, U.S. container import volumes declined 6% from January, but jumped 23.3% when compared to the same month last year. We would expect the month-over-month results to be smaller as February is a shorter month. The year-over-year results would indicate exceptional growth; however, they do not take into account the impact of the Chinese Lunar New Year on the February 2023 results. The growth is still strong but, based upon Descartes’ analysis, it is more likely to be ~13%, which is further explained below.

Compared to January 2024, imports from China reversed their robust growth in February, which impacted West Coast ports—especially the Port of Long Beach. Lower import volumes benefitted port transit delays as the combination of the Panama drought and Middle East conflict had less impact at the top East and Gulf Coast ports. The March update of the logistics metrics Descartes is tracking shows that 2024 is starting off to be a strong year for U.S. container imports; however, global supply chain performance may be impacted throughout the year because of ongoing conditions at the Panama and Suez Canals and upcoming labor negotiations at U.S. South Atlantic and Gulf Coast ports.

U.S. container imports show strong growth.

February 2024 U.S. container import volumes decreased 6.0% from January 2024 to 2,137,724 twenty-foot equivalent units (TEUs) (see Figure 1). Versus February 2023, TEU volume was higher by 23.3%, and up 19.5% from pre-pandemic February 2019. There are several reasons for the sharp year-over-year increase that could overstate this February’s results. Leap year occurred in 2024, adding one day of capacity in February. In addition, Chinese Lunar New Year occurred on February 11 this year versus January 22 in 2023, so February 2024 saw no impact on U.S. imports from China while February 2023 did. To gain more clarity on the year-over-year performance, Descartes analyzed TEU volumes for the first 15 days in February of both years where there would be no impact from Chinese Lunar New Year. During this timeframe, the growth in container imports was 13.3%, which is much more representative. Overall, Figure 1 shows that the first two months of 2024 are more in line with the consumer-fueled pandemic growth.

A graph of different colored lines

Description automatically generated

Source: Descartes Datamyne™

“February 2024 was a strong month considering its brevity and continues the robust performance that started in January 2024,” said Chris Jones, EVP Industry and Services, Descartes. “The combined effect of the Panama drought and the conflict in the Middle East on transit times declined in February and volume for the Gulf Coast ports remained constant versus January.”

The March report is Descartes’ thirty-first installment since beginning its analysis in August 2021. To read past reports, learn more about the key economic and logistics factors driving global shipping performance, and review strategies to help minimize global shipping challenges, visit Descartes’ Global Shipping Resource Center.

OSRA investment

5 Reasons Billing Transparency Is a Game-Changer for BCOs After OSRA

On June 16, 2022, U.S. President Joe Biden signed the Ocean Shipping Reform Act (OSRA). One of its objectives was to reduce the costs associated with the demurrage and detention billing of beneficial cargo owners (BCOs). BCOs have previously complained about the lack of shipping billing transparency, noting they had to pay for costs outside their control and that the bills received were frequently unpredictable. Here’s why the OSRA should improve those issues and what BCOs can expect.

1. It Should Eliminate Questionable Demurrage and Detention Billing Practices 

Many OSRA elements center on forbidding some demurrage and detention billings imposed on BCOs. For starters, beneficial cargo owners will no longer receive extra charges based solely on the size, weight, type or classification of the cargo. 

OSRA also facilitates the Federal Maritime Commission (FMC) to investigate suspected unfair practices against U.S. shippers, including those associated with carriers’ discriminatory behaviors. 

Relatedly, ocean carriers must prove their demurrage and detention billing decisions occurred on reasonable grounds. Improved shipping billing transparency provides a more concrete paper trail, helping BCOs trace and see the justification for specific charges. OSRA also allows the FMC to impose penalties on parties found to engage in retaliatory practices against U.S. shippers, including those that could make securing space on ocean vessels more difficult.

These changes should level the playing field for people who work with ocean carriers. They should also reduce the fear people may have for reporting entities that try to charge unwarranted fees. 

2. It Removes the Recipient’s Obligation to Pay Non-Compliant Bills

OSRA specifics relieve recipients from paying demurrage and detention bills found non-compliant. Demurrage charges occur when too much time passes before full containers are moved outside of a terminal or port for unloading. Parties become liable for detention charges when it takes too long for shipping containers to return to the correct depot after unpacking finishes.

Both situations provide the relevant parties with a specific number of free days, and the fining begins outside that time frame. Now, BCOs and other shippers can challenge bills viewed as unfair, and the FMC has the authority to investigate such claims. 

The FMC also confirmed there’s no grace period for complying with OSRA. It went into effect as soon as Biden signed it. Additionally, OSRA’s specifics at least temporarily remove a recipient’s responsibility to pay a non-compliant bill. However, the FMC stipulated that the recipient must still pay if the biller reissues a compliant invoice.

Recipients must not believe they never have to pay a carrier’s bill after receiving one that does not align with OSRA. That’s only true if the recipient never eventually gets one that complies.

3. The Shipping Billing Transparency Extends Beyond the U.S.

Although OSRA is U.S.-based, it applies to foreign carriers that are moving goods between ports in the U.S. and abroad or transporting goods between the U.S. and other countries. Additionally, carriers must follow OSRA even if the demurrage and detention billing occurs outside the U.S., resulting in paperwork originating from other countries. 

These details should provide additional peace of mind for BCOs operating in an increasingly global market. Even if they primarily deal with companies based outside the U.S., those businesses must still provide the better billing transparency OSRA requires, as long as some of their journeys involve the U.S. and its ports. 

4. It Will Bring More Consistency to Shipping Exchanges

Shipping exchanges have become essential for people who move goods via land, sea or air. They’re online services that allow companies to advertise their available capacity to people who need to transport goods. These websites help people see all the possibilities and get the best rates for their desired dates. 

A part of the OSRA gives shipping exchanges three years to register with the FMC. However, the FMC has not yet provided the specifics for how that registration will occur, meaning that this stipulation may realistically take longer than three years to come into full effect. 

People associated with shipping exchanges should start preparing now for the high likelihood of extra paperwork associated with registering. They must also realize that failure to comply could give the FMC the right to shut down a business. 

However, the most likely positive effect for BCOs is that they will know the shipping exchanges with which they do business must fit within a specific framework associated with their FMC registrations. Moreover, if someone working for a BCO finds a seemingly non-compliant shipping exchange, they will have recourse for getting that conduct investigated. 

5. The Effects Are Already Evident

Another aspect of OSRA requires the FMC to publish an annual public report showing the parties penalized for inappropriate demurrage and detention billing and the associated fines. That document will be on a website for anyone to read. The information will also help parties avoid the common carriers shown to be first-time or repeat offenders. 

The good news for BCOs is that they can already see OSRA in action. In early June 2023, operator Hamburg Süd received a $9.8 million penalty under the Act. It was for “refusal to deal,” whereby the operator allegedly would not do business with a Florida-based furniture importer out of retaliatory action. Evidence uncovered about this situation showed Hamburg Süd stopped fulfilling its contractual agreements when representatives learned the furniture importer might take legal action against the company. 

However, the FMC subsequently agreed to review the language in OSRA regarding other refusal-to-deal-like instances. Parties from the International Federation of Freight Forwarders Associations (FIATA) raised concerns that many of the things carriers do to manage capacity — such as schedule changes or canceled sailings — could get co-opted to prevent certain customers from doing business with a company.

Thus, the FMC noted evidence of a carrier changing schedules or canceling trips for reasons other than demand fluctuations would not be considered legitimate transportation factors. This may be one of many OSRA reviews people see. In any case, such instances strengthen the overall shipping billing transparency of the Act.

Notable Improvements to Anticipate

Better shipping billing transparency affects BCOs and everyone else doing business with ocean carriers. These five aspects are some of the most compelling reasons why OSRA should end, or greatly reduce, unfair billing and retaliatory practices shown by the respective entities.

 

rare-earth

Rare-Earth Supply Chains are Concentrated in China – A New Bill Seeks to Change This

Navigating away from fossil fuel dependence places a greater demand on rare earth magnets. Congress has introduced a bill offering a tax credit for US rare earth magnet production. This would result in the construction of a local supply chain in an attempt to wean a reliance on China.

Terbium, neodymium, and dysprosium are just a handful of rare earths needed to help fuel offshore wind turbines, electric vehicles, and are also useful in robotics. A report from Wood Mackenzie’s Rare Earths Market Service pegs the demand for rare earth oxides to grow from 171,300 metric tons currently to 238,700 tons by 2030. 

On the border of Nevada and California sits the Mountain Pass mine. Soon after the gold rush in the late 1800s, Mountain Pass initiated operations producing zinc, lead, copper, and gold. Over the years production shifted to rare earths and from roughly 1960 to 1990 Mountain Pass was the principal source (globally) of rare earths. Environmental and financial struggles eventually led to suspended operations in 2002 but the purchase of the mine by MP Materials Corp has some believing that Mountain Pass could be the critical source (and production) of US rare earths moving forward. 

The Rare Earth Magnet Manufacturing Production Tax Credit Act of 2023 proposes a $20-a-kilogram credit for all US-made magnets. Those manufacturers that can source 90% of component parts from stateside producers would receive a $30-a-kilogram credit and the eventual phase-out would be in December of 2035. Currently, nearly 60% of rare earth minerals are mined in China. Mountain Pass, Myanmar, and Australia are the other major sources. The rare earth supply chain is divided into mining and concentration, refinement, and then production. While China is home to 60% of the source, the Asian giant controls 91% of all refining activity and 94% of production. This is near market dominance. 

The biggest hurdle for Mountain Pass and others will be building out a supply chain that only China knows how to run. Expertise is concentrated and junior mining projects will need to lure investment in uncertain times. Once a site is discovered, continued exploration and development coupled with permitting (in a stricter regulatory environment as compared to China) can result in a decade or longer before full-scale operation is achieved. Another challenge is no two deposits are alike and this means the same processing equipment cannot always be employed. The mining and concentrate stage can cost $1 billion-plus to implement and with MP Materials (US) and Lynas Rare Earths Ltd (Australia) as the only players outside of China and Myanmar, without attractive credits legislators fear the US will not be able to de-couple itself from China.

The Russian invasion of Ukraine taught the world what an overreliance on Russian oil means. The US is attempting to avoid a similar outcome.   

management

Which is the Best Logistics Management Software in the USA? 

Any business that deals with the transportation and distribution of commodities must have effective logistics management. Businesses are now using the best logistics management software in the USA to streamline their operations as the need for quick and efficient delivery grows. But choosing the logistics software solution that is the greatest fit for your company can be difficult given the wide range of solutions that are now available in the market. 

For companies that are involved in shipping, transportation, and supply chain management, logistics management software is a crucial tool. This tool will help to make the goods and services available for consumption at the earliest. The rise in demand for B2C delivery, same-day delivery, and next-day delivery has caused businesses to rethink their business strategies. This is where the use of the best logistics management solutions in the USA can be used to resolve logistics hassles.

We’ll look at some of the best logistics management software available in the USA in this blog and how they solve common business use cases.

The most widely used search terms when looking for the best logistics management software in the USA include:

  • Transportation management software
  • Inventory management software
  • Warehouse management software
  • Supply chain management software
  • Logistics software solutions
  • Order management software
  • Freight management software
  • Shipping software
  • E-commerce logistics software
  • Cloud-based logistics software

Which is the best logistics management software in the USA for business development?

Due to the complexity of logistics operations, it’s important that the software solution is user-friendly and can solve problems related to supply chain visibility, fleet efficiency, demand forecasting, and supply chain analytics.

LogiNext Solutions 

LogiNext Solutions is one of the best cloud-based logistics management software that is designed to help businesses of all sizes optimize their logistics operations. The platform gives companies real-time access to their orders, enabling them to monitor their progress and spot any possible supply chain problems. The program also offers carrier integration, and top-rated optimization algorithms (driven by AI and ML) that can assist companies in lowering transportation costs and delivery times. The user-friendly interface of LogiNext Solutions is another important benefit, making it simple for organizations to start using the program from day 1 and optimize operations based on custom reports.

Oracle Transportation Management (OTM)

Oracle Transportation Management is a popular logistics management software that is designed to help businesses streamline their transportation operations. Planning, execution, and monitoring are just a few of the services that the software offers to address every facet of logistics management. One of OTM’s key benefits is its capacity to optimize shipping routes, which lowers transportation costs and improves delivery times. Additionally, the platform offers real-time insight into shipping progress, enabling them to swiftly detect and resolve any potential problems in the supply chain.

SAP Transportation Management (SAP TM)

Another top-rated logistics management software that is commonly used in the USA is SAP Transportation Management. Businesses can use the software to manage their whole supply chain, including carrier selection, freight planning, and optimization. One of SAP TM’s important strengths is its capacity to interact with other SAP systems, enabling an information flow that is seamless between multiple departments. Businesses can use the software’s comprehensive analytics and reporting features to get insights into their logistics operations and pinpoint areas for development.

Finally, deciding on the best logistics management software in the USA for your company might be difficult. As more firms sell products online and require sophisticated shipping and fulfillment processes, there is a growing demand for software solutions that may assist them in managing their e-commerce logistics operations. On the other hand, businesses can discover the best fit for their needs by analyzing the software’s functionality, integration possibilities, and user-friendliness. Whether your company is small or large, there is a logistics management software system in the USA that can help you optimize your operations and cut operations costs.

Summary: This blog will help you find the answer to the best logistics management software in the USA. It entails the key features each of the providers offers to ensure hassle-free supply chain operations.

Author Bio

Matt Murdock works for a leading SAAS-based platform called LogiNext Solutions. Where he helps businesses optimize their logistics operations and improve their delivery performance. With a passion for innovation and technology, Matt is always looking for new ways to streamline logistics processes and enhance customer experiences. In his free time, he enjoys writing blogs based on his experience in the logistics industry. Happy reading!